Changes to the Bright-Line Property Rule:
Effective July 1, 2024, the bright-line property rule is undergoing significant changes as below:
For properties purchased between March 29, 2018, and March 26, 2021: The bright-line rule applies if the property is sold within five years of purchase.
For properties sold after July 1, 2024: The bright-line rule will apply only if the property is sold within two years of purchase.
For properties purchased on or after March 27, 2021: The bright-line rule applies if the property is sold within five years for qualifying new builds
For other residential properties, the rule applies if sold within ten years
Proposed Changes to the Residential Tenancies Act 1986:
Recent amendments and proposed changes aim to restore certain provisions and encourage investment in the rental market:
90-Day No-Cause Terminations: Reinstates the ability for landlords to end periodic tenancies without providing a specific reason.
Amendment to Section 60A: Allows fixed-term tenancies to end without providing a reason.
42-Day Notice Period: Reintroduces the 42-day notice period for landlords ending periodic tenancies if: - The landlord or a family member intends to move into the property. - The property is typically used to house employees, and the landlord wants to move in an employee. - The property is under an unconditional sale agreement requiring vacant possession.
Tenant’s Notice Period: Restores the tenant’s notice period to 21 days for ending a periodic tenancy.
Ending Fixed-Term Tenancies: Reinstates the landlord’s ability to end a fixed-term tenancy at the end of the term without needing a specific reason.
Legislative Process and Timeline:
The first bill was introduced and had its first reading in May 2024
The bill has been sent to the Social Services and Community Committee for review
Submissions opened on May 22, 2024, and will close on July 3, 2024
If passed, the new law could come into effect by late 2024
Current Market Conditions:
Supply has increased for the second month in a row compared to the same time in 2023, and with fewer people attending viewings rent levels are stabilising. While a flat market over winter is to be expected we do feel the market has plateaued. Overall we are seeing weak enquiry as people just hold-off and hunker down. We expect to see an uplift in the spring.
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